Greater mortgage choice for buy to let landlords

Two lenders, Sainsbury’s Bank and The Mortgage Lender, have entered the buy to let market for the first time this month, widening the range of mortgage options available to landlords.

Increased competition among lenders is good news for buy to let borrowers, particularly given recent changes which have made owning a property to rent out more expensive. These include the 3% stamp duty surcharge on second homes, and a reduction in the amount of mortgage interest tax relief higher and additional rate tax payers can claim.

Keeping outgoings to a minimum is a priority for most landlords, so if you haven’t reviewed your buy to let mortgage or mortgages for a while, now’s a good time to check whether you could find better rates elsewhere.

Sainsbury’s buy to let mortgages

Sainsbury’s first ever range of buy to let mortgages is only available through brokers including L&C. Only individuals and not limited companies are eligible for the mortgages, and applicants must have a minimum income of £20,000, excluding rental income.

Lending is available up to £1m if borrowing up to 60% of the property’s value, or up to £500,000 if borrowing up to 75%. Cashback is available and landlords who are remortgaging benefit from a free valuation.

The Mortgage Lender’s new buy to let products

The Mortgage Lender’s buy to let mortgages are also only available through selected intermediaries, again including L&C.

Applications from limited companies and limited liability partnerships as well as individuals will be accepted, and mortgages are available for new build properties, flats above commercial properties, ex local authority properties, multi-unit freeholds, and houses in multiple occupation (HMOs).

Products will be available to landlords borrowing up to 80% of the property value. There’s no minimum income requirement and The Mortgage Lender said it would take a “pragmatic approach” to underwriting.

The maximum age applicants can be is 80, but they must be no older than 95 when the mortgage term finishes.

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

We're here to offer our customers excellent fee free mortgage advice. Our expert advisers will help you secure the best mortgage deal whether you're a first time buyer, remortgaging your home, buying to let or moving up the property ladder. We'll help you throughout the mortgage process – no hidden costs or surprises, just straightforward, honest, mortgage advice.

Representative example A mortgage of £188,578 payable over 22 years, initially on a fixed rate until 31/12/23 at 2.19% and then on a variable rate of 4.74% for the remaining 17 years would require 62 payments of £900.79 and 202 payments of £1,094.12. The total amount payable would be £276,994 made up of the loan amount plus interest (£88,283) and fees (£133). The overall cost for comparison is 3.7% APRC representative.

London & Country Mortgages Ltd, Beazer House, Lower Bristol Road, Bath, BA2 3BA is a company limited by shares. Our Companies House number is 1988608. We are also authorised and regulated by the Financial Conduct Authority. Our FCA number is 143002. The FCA does not regulate most Buy to Let mortgages.

Our dedication to providing our customers with a first class mortgage service has helped us win over 150 awards since 2002, more than any other mortgage broker. In fact we’ve won the most prestigious awards in our industry on numerous occasions. You can see them all in our awards gallery.

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